Volkswagen accelerates restructuring / Tens of thousands of employees protest in Germany as the company prepares further job cuts

Volkswagen is accelerating its restructuring program in Germany, while tens of thousands of employees are protesting on Monday at the company’s plants, as well as at BMW and Bosch factories. Workers are calling for job protection and for the avoidance of plant closures or relocations.

Volkswagen brand CEO Thomas Schäfer announced that the measures agreed in 2024 are not sufficient and that the next steps will be discussed quickly with employee representatives. The decision comes after the automaker lowered its estimate for its operating profit margin to no more than 1%, from at least 4% previously.

Volkswagen intends to eliminate another 50,000 positions, as part of a plan that could affect approximately 100,000 jobs worldwide. Unions are calling for protection against Chinese competition, more effective European policies, and the preservation of gradual retirement.

Germany’s automotive industry is facing a slowdown in the Chinese market, high costs, the difficult transition to electric vehicles, and trade barriers in the United States. Since 2019, the German automotive sector has lost approximately 100,000 employees, while suppliers have massively reduced their workforce. Volkswagen shares fell 1.1% on Monday.